We have to face the facts. After more than a decade of low inflation, virtual full employment, rising house prices and general prosperity, the economic situation has got pretty bad very quickly. Looking at it from a consumer perspective the increased cost of living is increasing significantly and from a business perspective the increased cost of operating is already hurting profitability.

The effects are a dramatic loss of confidence, everyone and every business puts each item of expenditure under the microscope and the economy slows further as cut backs are implemented.

This is the reality of today but every one of us and each of the companies we work for have a choice in terms of how we react:

1. DO NOTHING, despair, talk every positive idea down, lament about the ‘good old days', give up, etc. This is the easy option and you will not find it difficult to find people sympathetic to it. This is also the option with guaranteed results, individual depression and company failure.
2. Do something about it, TAKE ACTION! As an individual, find ways to cut expenditure. The web is a brilliant source of ideas and the price comparison websites make it much easier than it ever was before. It is amazing what can be achieved with little effect on your lifestyle and it will make you feel better.

From a business perspective, take a good hard look at your costs and if you have not already done so do it now! Like every individual you may be amazed what you find when you look. Sometimes it may be as simple as buying the same or a similar product from a different source. Other times it may be a case of spend or don't spend. In these cases ask yourself whether the expenditure adds value to your business/customers or whether it doesn't add value but is necessary for some other reason or whether it doesn't add value and is not necessary. The latter category is what should be cut, as it will not affect the quality of products or service that you offer to your customers.

Another thing to do is to look really hard for the opportunities because out of every challenging situation come opportunities as well as threats. Ultimately, whether you work for a manufacturer or an operator our collective success is governed by the decisions made by end consumers. Do they buy, who do they buy from, at what price do they buy and at what frequency do they buy? And in a lot of ways we are fortunate in the vending industry.

We provide refreshment solutions and everyone needs refreshment, whatever the economic situation. Our machines are present at people's places of work and when they are ‘on the go'. They suit the busy lifestyle of today's consumer and are complementary to people's propensity to snack and buy on impulse. Vending allows businesses to control and often reduce their refreshment costs, very attractive in a ‘down' market.

Vending products are generally high quality but still a relatively low-value purchase compared to, for example, a coffee shop or service station drink. Someone paying £2, twice a day, will spend £1,000 each year, a significant cost, which can easily be reduced when set against the alternative of getting a great vending machine coffee for 50p, 60p or even £1? And how many machines are vending at these prices, surely a good opportunity to raise them to help offset some of the extra costs that we are all experiencing?

Finally as I said above, I believe it is the consumer who will decide whether our industry is successful in the long-term. We may be in a period of economic downturn but I don't see anywhere an acceptance on the part of consumers to a reduction in quality. Whatever part your company plays in the supply chain, cut out all unnecessary costs but don't cut back on quality. More than ever, now is the time to innovate, introduce new ideas, introduce new products, communicate with your customers and consumers, give them high quality products and relevant added value services and charge appropriately for them. Companies who do this will survive, get stronger and prosper in the long-term, as others fall by the wayside.